Porinju Veliyath has recommended stocks of blue-chip companies run by promoters with proven track record of wealth creation. He has confidently assured that these stocks will create “beautiful wealth” for shareholders in coming years

Porinju, you have not really answered Tanvir’s and my question

Porinju tried to escape without giving specific stock recommendations. He tried to beat around the bush by talking about generic investment theories.

However, he had grossly underestimated the vigilance of Ayesha Faridi and Tanvir Gill.

Both ladies are famed for their incredible interrogating skills and ability to ferret out actionable information even from recalcitrant guests.

We have seen earlier that even legends like Warren Buffett, Rakesh Jhunjhunwala, Mark Mobius and Mohnish Pabrai obediently answer questions that are asked by the duo without beating around the bush.

Some like Mark Mobius and Mohnish Pabrai also offer stock recommendations in the form of Diwali Gifts due to the persuasive abilities of the two ladies.

Tanvir asked Porinju (@4.30) which banking and insurance stocks are good now for “bargain buying”.

Porinju did not name any stock. Instead, he referred to the statement by Billionaire Uday Kotak of how the share of private banks would surge to 50% from 33%.

“There is lot of things to look forward to in well managed private sector banks with a reasonable or low NPAs,” he advised.

Reading between the lines from this @udaykotak interview. A 30:70 ratio between private and public moving to a 50:50 ratio in 5 years assuming a 15% industry credit growth means a 27% CAGR for private financiers. Smaller companies in niche segments can grow faster ! https://t.co/CgZQNlSM6x

IDFC Bank + Capital First = Next Bajaj Finance

For various unknown reasons, IDFC Bank has languished and remained at the bottom of the barrel over the past several years.

However, its impending merger with Capital First under the leadership of the charismatic V. Vaidyanathan will transform fortunes and result in mega multibagger gains for investors, Porinju opined.

(Images credit: Business Standard)

“I was just looking at IDFC Bank. The stock is priced at around Rs 48, maybe around Rs 16,000-crore market cap. Now that is getting merged with Capital First and it is going to be around Rs 22,000 crore market cap today. Mr Vaidyanathan is a very good leader and maybe under his leadership, this merged entity looks like a very safe bet.”

Prima facie, Porinju’s theory makes sense. Capital First has in fact been referred to by experts as the “next Bajaj Finance” because it is walking in the illustrious footsteps of the latter.

Idfc bank would easily give dcb kind of returns.. so if it looks like a good story to anyone… They should buy capf at cmp and hold idfc bank for at least 2 more year to see some serious growth.

The industry is turning around after a decade, despite disruptive @Airbnb etc. High cost and crack down on black money could moderate supply going forward. Lower GST is tailwind for 3&4 Stars @safiranand@hiddengemsindia

Way2Wealth has provided a detailed explanation of the various diverse businesses managed by Godrej Industries and opined that the steep discount at which the stock is now quoting makes it an irresistible buy.

“GIL is a holding company for all major Godrej Group Companies. In the recent price correction and at relevant stakes in the subsidiaries and associates we believe the holding discount has widened from its earlier average of 15-23% to 45-50%. We believe this gap will narrow down given the strong growth prospects of the subsidiaries in the next 2 years and hence we are POSITIVE on the stock.”

Promoters with proven track record of wealth creation can create beautiful wealth for shareholders

“Some of these wonderful big themes have promoters with proven track record of wealth creation. The investors can always bet on such large companies with more clarity and visibility in the given consumption themes for the country,” Porinju stated.

“They all are very large businesses in such a huge country and if well managed, these companies can create beautiful wealth for the shareholders in the coming years,” Porinju added even as Ayesha Faridi and Tanvir Gill smiled approvingly.

Bhansali Engineering Polymers Ltd (BEPL)’s stock price had increased too fast. It is up nearly 500% in the past 24 months. A lot of valuation froth is now correcting. It does have a strong business profile and can be accumulated after it consolidates a few quarters.

I have 100 shares of IFDC purchased recently . what will be the impact of IFDC and Capital First merger on my shares . Will they get reduced. What will be the impact on IFDC Share value of those 100 shares.

Is it advisable to accumulate IFDC shares or better buy capital first shares.

I am listing out here the fundamental features of a few well known stock advisory services. The fees charged, as well a few stocks that they are credited with having recommended, are set out. If you know of other service providers, do chip in. Also, if you have used any of these services and have […]

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